Update: Crypto Twitter reacts to SEC charges against 1Broker

28 Sep, 2018
News
Update: Crypto Twitter reacts to SEC charges against 1Broker

The SEC has made an announcement today that it has filed charges against international securities dealer as well as CEO Patrick Brunner, for allegedly violating the federal securities laws in connection with security-based swaps funded with Bitcoin.

In the press release, the SEC claims Brunner solicited investors from the U.S and around the globe to buy and sell security-based swaps. 

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Investors on the platform were able to open accounts simply by providing an email address and a user name with no additional information requied. Bitcoin funding was also the only way to fund investor accounts. 

The SEC states that "Special Agent with the Federal Bureau of Investigation, acting in an undercover capacity, successfully purchased several security-based swaps on 1Broker’s platform from the U.S. despite not meeting the discretionary investment thresholds required by the federal securities laws."

The SEC also claims Brunner failed to register 1Broker as a security-based swaps dealer. 

Director of the SEC's Fort Worth Regional Office stated that “International companies that transact with U.S. investors cannot circumvent compliance with the federal securities laws by using cryptocurrency.”

The SEC will seek permanent injunctions, disgorgement plus interest and penalties from 1Broker and CEO Brunner. The Commodity Futures Trading Commission also announced charges against 1Broker arising from similar conduct.

Crypto Twitter had a lot to say about the recent news: 

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Read more about: Bitcoin (BTC)

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